U.S. CODE

U.S. Code

§ 1185a. Wind-up of program

(a) In general

After October 8, 1996, the Secretary of Transportation shall not enter into any new contract for operating-differential subsidy under this part.

(b) Existing subsidy contracts

Notwithstanding any other provision of this chapter, any operating-differential subsidy contract in effect under this subchapter on the day before October 8, 1996, shall continue in effect and terminate as set forth in the contract, unless voluntarily terminated at an earlier date by the parties (other than the United States Government) to the contract.

The essential service requirements of section ^[1] 1171(a) and 1173(b) of this Appendix, and the provisions of sections 1175 (c) and 1213 (a) of this Appendix, shall not apply to the operating-differential subsidy program under this part effective upon the earlier of—

(1) the date that a payment is made, under the Maritime Security Program established by part B of this subchapter to a contractor under that part who is not party to an operating-differential subsidy contract under this part, with the Secretary to cause notice of the date of such payment to be published in the Federal Register as soon as possible; or

(2) with respect to a particular contractor under the operating-differential subsidy program, the date that contractor enters into a contract with the Secretary under the Maritime Security Program established by part B of this subchapter.

(d) Transfer and registration of vessel

(1) Notwithstanding any other provision of law, a vessel may be transferred and registered under an effective United States-controlled foreign flag if—

(A) the operator of the vessel receives an operating-differential subsidy pursuant to a contract under this part which is in force on October 1, 1994, and the Secretary approves the replacement of such vessel with a comparable vessel, or

(B) the vessel is covered by an operating agreement under part B of this subchapter, and the Secretary approves the replacement of such vessel with a comparable vessel for inclusion in the Maritime Security Fleet established under part B of this subchapter.

(2) Any such vessel may be requisitioned by the Secretary of Transportation pursuant to section 1242 of this Appendix.

[1] So in original. Probably should be “sections”.

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